There is an easy and affordable way to trade on the Ethereum quotation and its price changes in the market: Ethereum binary options. You will not need in-depth technical knowledge, nor particular tools to apply to your trades: you will only have to determine which direction Ethereum’s valuation will take, over a certain period of time, and then follow its performance, either positively or negatively, in order to make a profit from the change in the price of the cryptocurrency. When opening a binary option, it will in fact be sufficient to indicate the direction of the change in the price of an asset, and then proceed with an upward trading if you believe that from that moment the price of that asset, in this case the value of Ethereum, will increase, or on the contrary you can trade with a downward position if you believe that Ethereum will lose value from trading in the market.
In this article we will analyze all the features of Ethereum binary options trading, and to begin with we present one of the most used platforms to trade in this area: IQ Option. In this environment, practical and easy to use, the trader can start with a minimum of 1 euro to trade Ethereum with binary options, but also exercise without any risk thanks to the possibility offered by the free demo mode, thus avoiding making a first, minimum deposit.
How to Buy Binary Options on Ethereum
In order to purchase binary options on Ethereum, the first step is to choose one of the platforms dedicated to online binary options trading, and sign up as a user. Once you have obtained your login credentials, all you need to do is to deposit an initial amount, at your convenience, to trade the market right away.
Here is a complete and concise list of the binary trades on Ethereum, in the exact order of execution:
First of all, you must tell the platform which asset you intend to trade on: in this case, choosing Ethereum among the financial instruments available to you.
At this point, you must specify the time frame over which you wish to operate: the expiry date can vary from an instant to a longer period of hours.
Then the user specifies the amount of the operation.
At this point, the operator will only have to decide on the direction that will mark his option. There are two possible choices: the High and Low option, depending on the direction that Ethereum is expected to take in the specified time frame.
As you understand, the steps to follow are linear and easy, and allow anyone to buy binary options on Ethereum. In fact, the difficulty is not in the series of operations to be performed, but in predicting which direction will characterize the fluctuation of Ethereum in the time interval.
Buy Ethereum Binary Options on IQ Option
The cryptocurrency sector is characterized by high versatility and the ability to change the reference horizon in a short time: the IQ Option platform is no exception. This tool was in fact used in the past exclusively for binary options trading, while at the moment it offers the user numerous other solutions for trading.
Those who subscribe to the platform will in fact have a particular type of tools at their disposal, called Crypto Trading, to trade on Ethereum with IQ Option: the trader can trade the opening of positions upwards, or downwards, compared to the market price, also using the functions that allow these operations to be closed automatically when particular conditions occur, as well as a wide range of other operations.
What the platform offers are therefore complete and innovative financial instruments, and not binary options on Ethereum; these are however always available on the IQ Option platform for other types of tradable assets, such as equities, Forex, commodities and indices.
Ethereum on IQ Option, How it Works
Getting started on Ethereum with IQ Option is extremely easy: click on the “+” symbol at the top of the screen. You will then open the Crypt section, through which you can select ETH from the list of cryptocurrencies available to the trader.
We will then open the main screen for trading IQ Option. The user has clearly under control, as the screenshot shows, both the situation updated to the real time of the asset, graphically represented, in addition to the entire list of functions, on the right side.
Here the user can select the commands “Buy” and “Sell”, which correspond to the upward and downward position opening respectively. The investment amount of these operations, the automatic closing command and the possibility to make a pre-order are also present in this part of the window, on the right side.
Thanks to the automatic closing function of IQ Option, the user has the possibility to define when opening a position a maximum level, expressed in percentage terms, of profit or loss at which an automatic position closing command is triggered: an extremely useful function to avoid accumulating capital losses, or to achieve a desired gain before a quote moves in the opposite direction. In the image taken for example, below, the system will automatically close the position when it makes 35% profit, or equally in the case of a loss of 95%. When opening a new position, the system’s default setting is these two values.
Another useful function on the IQ Option platform, also in the right section of the screen, can be accessed through the pre-order window which is opened by clicking on the appropriate command. Let’s look specifically at the example of the image: in this case a position opening order has been set only when the price exceeds the 919.20 level: when the Ethereum price reaches this level, the system will complete the pre-order previously set.
Change Position And Real Time Information
When you open a position, some of its characteristics can be changed during its duration. In fact, the automatic closing percentages can be changed, at any time, as shown before: in the following figure we see how to do it, through the arrow button and the adjustment of a new percentage thanks to the wheel. In the case of a change in market conditions, or a different consideration on the traded asset, therefore, you can always change the levels that the quote must reach, both in gains and losses, to trigger the automatic closing of the position.
In the quadrant that opens in this way are also accessible, at any time, all the information updated in real time about the trade: the trader has therefore the details of the commission, the amount of the investment, the updated price of the asset, the price at the time of opening and the opening time of the position.
Closing the Position
In order to close an open Ethereum position on IQ Option, you will use the same quadrant as previously observed, taking care to highlight the position you intend to close. If, on the other hand, you want to close all open positions at the same time, simply execute the “Close All” command.
Let’s not forget that the amount of available equity can be consulted at any time on the IQ Option platform, located at the top of the screen: it is important that the trader, in order to orient himself in his investment strategies, always has the value of his portfolio under control.
Opinions on Ethereum Trading via IQ Option
After presenting all the features of this platform, it is time to take stock of the features offered by IQ Option for trading on Ethereum, highlighting the advantages and disadvantages offered by this platform.
The first, very useful advantage is certainly to be able to trade from 1 dollar: this is in fact the minimum requirement required by the platform to start trading. With a little less than one euro you will have at your disposal all the options and features offered by the platform, with the benefit of being able to accumulate practice without affecting your capital.
Always in favor of the practice, IQ Option offers the advantage of trading also in free demo mode: in this case no deposit, even if minimum, is required to the user. Through free subscription to the platform, you have immediate access to the demo mode of IQ Option.
The interface of the platform is both agile and complete: an additional benefit offered by the platform is the graphical features that implement IQ Option. You can therefore have a graphical representation, updated in real time, of the performance of the asset, on which you can also insert graphical indicators for technical analysis or modify the typology, for example by choosing the candlestick chart. We also talked about it in the IQ Option review.
Those who are interested in exchanging information and advice with other traders have a live chat system available on IQ Option: an undeniable advantage for those who always want to be updated on the latest news or who simply want to interact with other users.
We can instead identify in the wide range of profit lines a weak point of the platform: these are shown automatically on the chart, considering the price marked at the time of opening and other parameters set on the open position.